Buzz Bits: Dow, Nasdaq Climb Higher
Your daily Buzz & Banter highlights...
Editor's Note: This is a small sample of the content available on the Buzz and Banter.
Earnings Report - MV News
- Google (GOOG) announced 4Q EPS of $3.18 vs $2.91 cons on revs ex-TAC of $2.23 bln vs $2.2 bln cons. Revs including TAC were $3.21 bln vs $3.14 bln cons.
- Gilead (GILD) reports 4Q EPS of $0.78 vs. $0.68 cons on revs of $899.2 mln vs. $847.7 mln cons.
- Starbucks (SBUX) reported 1Q EPS of $0.26 (in-line) on revs of $2.36 bln vs $2.35 bln cons. Comps for the quarter were +6%.
- Alliance Data (ADS) reports 4Q EPS of $0.77 vs. $0.66 cons on revs of $524.5 mln vs. $500.5 mln cons.
Bell Buzz - Todd Harrison - 3:30 PM
- Good traders know how to make money but great traders know how to take a loss. It's not fun being wrong in a public forum but it happens to the best of us and there's no rug sweeping in the 'Ville. Particularly since the best lessons are learned from mistakes (hopefully mine, not yours).
- I'm going home flat the emerging markets. It was "part hedge--part spec" (vs. some commodity longs) and, since I pared my trading exposure yesterday, I have one of two options. Rationalization or discipline. Check please!
- Days like today remind me of why I like a 'balanced' book. I'll take the cork off my fork long enough to note that the longs mentioned this morning are, for the most part, out-pacing the broader tape.
- I gotta tell you, those off-balance sheet columns (OBS) are hilarious. Hardcore Buzzers should know that we're gonna stick to the nuts and guts stuff on the Buzz but for MV.com and life in general? A little levity goes a long way.
- Fare ye well, Minyans, and remember that the decisions you make in the next half hour will define the risk profile you wake up with tomorrow. May peace be with you.
The Fed's Really Making a Statement - Kevin Depew - 2:32 PM
True enough, the Fed really is making a statement out there. As we noted would probably happen in Five Things this morning, the FOMC removed the word "mixed" with respect to the economy from the statement, opting for "Recent indicators have suggested somewhat firmer economic growth."
As expected too, the vote was unanimous with the replacement of The Dissenter, the Richmond Fed's Jeffrey Lacker, from the FOMC voting.
What was slightly unexpected was the note that "some tentative signs of stabilization have appeared in the housing market." That's a bold & weird statement; bold if for no other reason than that it simply can't be substantiated by the facts, weird if for no other reason than that it simply wasn't necessary to include that note to make the case that economic activity has become more firm.
Reading between the lines, it must mean that the Fed is far more concerned about spillover effects from a housing slowdown than has previously been admitted.
Reading The tape: Sellers Losing Dominance in the 30-Year Treasuries - Jess Thompson - 10:40 AM
My firm's read on the price action in the Long Bond last week was that it was a short-term selling climax which was short-term bullish. I posted a chart illustrating that any stops stacked under the Sep & Oct '06 uncle points (lows) were elected and that minimized long side participation which is a perverse formula for a rally. Another example, that ideal trade location for a long is often at odds with conventional linear thinking processes (that Bonds are going down).
I have been expecting a move into congesting with a possible spiky retest of last week's lows and my firm is accumulating a long position fading current sentiment and the technical breakdown.
The long Bonds spiked on this morning's negative (to long Bond holder's) GDP news but that spike was quickly rebuffed by buyers indicating a loss of sell-side dominance. One of the more reliable bullish tells in the tape is a positive response to negative news -- we're seeing that in spades today.
My target is a short-covering rally up above the 110-8 level in March 30-year futures where we'd scale out between 110-08 to 110-16...
Position in bonds
What you need to know... - Jon Doctor J Najarian - 8:20 AM
Eastman Kodak (EK) Sales Top $3.8 Billion – Revenue was 9 percent lower than this same period last year, but the imaging company managed to eek out $0.53 per share profit. The bad news is that both the revenue and earnings were shy of estimates.
Motorola (MOT) Rises On Icahn Stake – MOT shares rallied nearly 7 percent yesterday when it was disclosed that activist shareholder Carl Icahn had accumulated nearly 1.4% of the company's shares. MOT is some 30 percent under its 52-week high and I suspect Mr. Icahn smells a deal.
Time Warner (TWX) Meets Estimates - Net earnings at the media conglomerate were up 34 percent, partially because of a $769 million gain from the sale of its internet access biz in Europe. The company earned 23 cents, or one penny ahead of estimates.
Eli Lilly (LLY) Revenue Tops Estimates – That's the good news, the bad news was that the drugmaker's profit fell 81 percent on charges. The bottom line is that LLY came in light by some $0.02 per share versus estimates and by about $100 million on revenue.
Positions in TWX, EK, MOT
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